Shell Completes Divesting 30% Stake in Nigeria's OML 18 to Eroton for $737M
Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), completed the assignment of its 30 percent interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta, Nigeria to Eroton Exploration & Production Company Ltd. for $737 million.
"This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business," Shell said in a press release Friday.
Despite the divestment, Shell said it remains committed to keeping a long-term presence in Nigeria.
OML18, spread over an area of 400 square feet (1,035 square kilometers), includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities. The divested infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML. The divested fields produced on average around 14,000 barrels of oil equivalent per day (100 percent) during 2014.
Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10 percent and 5 percent respectively in the lease, bringing Eroton Consortium's total interest in OML 18 to 45 percent.
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